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tv   Fast Money Halftime Report  CNBC  May 17, 2017 12:00pm-1:01pm EDT

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people aren't talking about competition with amazon. that's where the market 2017 for me, amazon, amazon, amazon and gook l io, apple, retail, everywhere. over to headquarter, scott wapner and the half. >> our top trade, d.c. drama. whether the turmoil around the trump p presidency has reached a tipping point for stocks and how to protect yourself if it has. with us today -- and kevin o'leary is here. also with us from the white house today is cnbc's eamon javers and from new york, cnbc cr contributor, ron inaans. vix surging to its highest level
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since late april. our question is this, whether a market that has largely ignored the controversy in washington and if it is finally paying attention what that means to yo your money. kevin, people have been surprised at the complacency of the market. is today a sign all of that is about to change in a big way? >> i don't think so. this is just the pause that refreshes. we've been waiting for a correction like this. it's not a big deal. this whole thing with trump and the circus around it is to boil down to, he said he said, a memo versus what he said to him at a din r, whatever, it's going to go away. i'm extremely bullish about the markets and i took this opportunity today to buy mid cap stocks. >> ron? >> i'm going to take the other side for a while.
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even before he was elected, this was not going to result in a good outcome. as i said yesterday, remain among those who believe this president will have an attenuated term in office and this is going to get far worse before it gets better and i do think the market is starting to recognize there's increasing risk of that. it's been reflected in the dollar now. only now is it being reflected if stocks. >> at some point, enough is enough. the market is only going to put up with this, the noise and and bombshell satisfactories for so long before it begins to react. look at the vix today? p. >> the wound hurts when you first rip off the bandage, then hurts less when you go on. it hurts more today because this is comey coming at the president saying he asked me m me to stop
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the flynn investigation f. that's what i lot of this is today. is this peek insanity out of washington, d.c.? it could be because that 23% pop you're talking about, but you look at the rest of the futures going out there, means bottom lib lirng much higher in the bottom end of the curve. people will be selling aggressively. so if we don't see a continuation of this, then this vix will evaporate and go back down into the 11 range. >> jack welsh said impeachment proceedings would quote blow the market away. we're a long way from that and
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no one is is suggesting we're getting close to that point, but it is a sign of the uneasyness the market seems to be having today even if it's just a start with d.c. >> i disagree. the last impeachment proceedings we had were in 1998 and we had an explosive 24 month period for stocks immediately following. that's number one. who's to say the market wouldn't prefer pence because you have two-thirds of the distractions out of the way. nobody thinks that he's up on the phone late at night talking to russians and maybe you have a better shot at tax reform under president pence, so who's to say that's not an upside catalyst. three, i don't think they're going to impeachment proceedings with nothing more than a memo was they only get one shot at it and if it doesn't work, so they're not going to woman with something like that, theb then begin this whole process. there's got to be more. we haven't seen it yet, maybe it doesn't exist. and last but not least, i don't really view today's activity as abnormal. i view every day leading up to today as ab norral.
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we made a new high last july in the s&p and since that day, that's 215 days ago, folks, since that day, we have not had a 5% correction. that's almost a year trading within pennies of record highs. that is the aberration, that's not typical. it's much more typical we get 5% pullbacks. we're 1 is% from the high and saying the market is freaking out about impeachment? totally disagree. >> eamon, no comment from the white house i saw you say earlier and we did have comments from paul ryan. in support of president trump. >> that's right. he said today that he just doesn't worry about things he can't control and suggesting that he can't control all of this drama coming out of the white house right now. you guys were talk iing about whether we're at peek insanity here in washington, d.c. i don't know what the market p implications are of that, but i'd hesitate to say we are here
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in washington. john mccain put it well the other day when he said this is a centipede dropping shoes and there's a lot that keep dropping. one of the concerns for this white house is that -- what is in those memos is something we don't know. we don't know whether there are tapes of these conversations and we don't know today whether putin has tapes or tributes of whatever it was that donald trump said to his officials last week. there are a lot of unthoens that can drive headlines. whether the market can process that is for you guys to debate, but there's more to come here in terms of the news cycle out of washington. >> if there is more to come, how can you remain so positive that none of it is going to matter?
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>> it's not because at the end of the day, people are getting used to this president's style. he's got a very eclectic way of communicating with people. you know, i was in new orleans last week talking to the average person in running a small business. and i asked, what do they think is going on in washington? it's just a circus. it's just noise. who gives a damn. look at the markets. these sales are up 7% this year. we sit here and look at it every day. at the epd of f the day, america doesn't care and i like that about america, a lot. >> i don't think that's true. i think america does care. just because we're in the early days of f this, as we were in the days of the clinton impeachment and in the days of nixon's impeachment in 1927 when these stories first began breaking, there were nondenial denials from the white house.
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i don't think this president is just you know, we're getting used to his style. not impeachment, we should be more focused on the 25th amendment, which some in congress may deliberate or come to the conclusion that he or as i've argued, is not fit to hold the office. >> it's josh, i'm not going to get political because i have a na jar yan to my left and that could result in bloodshed. but i think it's important, we're like taking this new dwom and saying it's a game changer. this guy does whatever he wants. he's literally running businesses out of the white house. no one is stop iping him from a he does -- why all of a sudden, hold on, how do we know when there's going to be the straw that broke the camel's back when for any other human being inhabiting this office, those straws have been fallen or pulled months ago. how can you be so certain this is the one the market cares
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about? >> when i look at the arc of this developing story, having covered events like this for 33 year, it gets worse before it gets better. this is life and death. when the russians have transcripts of a meet wg the president in the oval office that they are willing to share with our congress. that's just another in a series of -- middle america is tired of hearing about russians all day long. >> doesn't matter if we're bore ed with it. there's an investigation at the fbi, at the cia, at several different senate and house committees. this is not little stuff. this is historic stuff.
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you may want to be bored by it, mamt to be entertained by it, the market may not want to pay attention to it. this is historic and i think it's going to have an outcome that is equally historic, the things we've seen in the past. 1974 and 1998. >> vix is up 23% as we're having this conversation. is volatility about to come back in a very big way? >> my argument is no. i think we're seeing a flip and we're going to have higher volatility, but we have to separate the noise versus the signal. what i think is important to keep in mind is what's drying the market rally, better earnings, better growth, both here in the u.s. as well as aboard. i don't think this derails the market recovery or the growth recovery we're see ng the u.s. higher market rs going to be driven by the fact you're see
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ing better contribution from the consumer and better contribution from international markets. >> so, the rolling on of the trump agenda doesn't matter at all? >> i think josh has said this, but i spend all day talking to participants, investors, equity trader, you name it. what everybody is is saying is what ron said, which is this is going to be an attenuated presidential administration. we're not going to get four years. the market is is looking past that and saying mike pence, a republican, a sober individual, with two republican houses in congress will get the trump agenda done better than donald trump will. >> which i said yesterday. that's exactly the point. >> not going to happen. i predict and i'll say it now, this president will be around if for eight years. people really are starting to like a different style. that's all this is. >> no one likes this. you're wrong. he has sub 40% approval. >> people who can impeach him.
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z >> i talk to people who run businesses on main street and small towns across america. they are enjoying the entertainment. >> they're justifying and rationalizing the decision they made last fall, that probably they're not that comfortable admitting, that none of the things they've voted for are happening. in many cases, it's the opposite. the polls are 38%. can you name a president that's been below 40? they've hated him from day one, according to the polls. >> he's at 55%. >> so, in order to move towards impeachment, firstly, we need the house to impeach him and then a two-thirds majority of the senate has to vote him out. so to get a 67% of the senate to vote him out is very hard. >> the only point here is that a, if the market itself thinks
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the agenda going to be pusheded off further, there's an agenda. there is no tax plan. there's a collection of things. there's not an agenda. >> does absurd behavior change the earnings outcome? yes or no? that's my point. i'm with you. >> look, i think you have to delineate between two things. the long r term outlook for the economy and the market. if mike pence were to become president, would be a more effective champion of those measures that would help the economy grow further and support the stock market.
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that doesn't mean an investor with 20 years to retirement sells stocks. it means trader rs cover their positions or take protective action, even those who might be worried about a correction. again, it has to be put through a certain prison. an uptick in the vix does not define the environment in which we find ourselves. in fact, quite the opposite. the market is lagging instead of leading. >> it's up 24% as we're having this conversation. >> no one wants to get out of the market. people were reticent to get a lot of thu u money put to work in the new market. as this tough comes out of d.c., you're telling me there's not a better than likely chance you don't have people hitting the
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sell button. >> there's still cash on the sidelines. still plenty out there waiting fwr a dip. you might get another day or two, there's going to be cash that takes advantage of this. >> these are up double percentage points and the dollar has lost all of its post election gains at this point, so if you ask what are people doing, they want to own blue chips, they want stocks to pay dividends. they want some expea shoour to the global growth and they're getting it elsewhere. >> why are they selling apple down 3.5% today? >> it's one day. >> it's a decent sized move for apple. it's with one they're dumping the hardest today.
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if you need a lot, if you're seeing resenlgss, apple's got all the cash. you can hit these 5 billion market caps and you're going to have to sell the whole company to get the money out. >> wouldn't change the outcome op on the new apple phone come the fall. be that's why this noise isn't going to affect the markets. this is just a correction. if a happen, then b is next. just not how markets work because it's a biological machine. bad trump headlines will royal markets. today they did.
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tell me what happens tomorrow. >> it's a still issue. i think the style is intriguing, entertaining and making politics more entertaining. >> or until the market decides it's not. i don't understand how you can be so -- >> i love you, too, i swear. we look like twin mothers from a different mother. i think being glib about this experience not just domestic economic consequences, but rather serious foreign policy consequences, the fact that the president may have give p up sensitive information to the russians about israeli intelligence, these types of things are almost unheard of. these have global consequences and by the way, i wouldn't be long emerging markets in europe either. i think those are have gotten way ahead of themselves. could be royaled by some
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developments. >> europe's been a huge winner and will continue to be so. >> i know. >> why continue to own things that are up a lot when there is i think -- >> because they're barely up over five years and ten years. >> the risk still looks very attractive. as you start to see the political uphee value, you'll see it come down, specifically in europe. that creates a boone for european equities. what would you own then, ron? >> puts. >>. >> i would take protective action. you don't sell disney because of this. that's a different rationale. i'm talking about a near to median term distraction and whatever economic agenda might have been contemplated and some disruption to the overall economic political and social environment. i think that is something that the market will have to reckon with over time. it's not the end of the world.
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>> one quick question ron though, so, you sound like you're really concerned about all the things going on in washington and i'm not glib about it. i think i'm probably more on the same page with you than maybe i sound in the segment. but if what you're, if that's your concern, it sounds like if the president is chastened or reprimanded or goes through a really unpleasant few months he wishes he hadn't and this is the thing that gets him on course to become a better version of himself, maybe this has a silver lining that the market is sniffing nout advance. >> you know, i coffered hvered business man for a long time. i just don't think that's a possibility. 70-year-old man is not going change so dramatically in office. this is a subjective comment, but i've covered him enough. dealt with him enough. he's hung up on me enough that i know you know, it's hard for a leopard to change his spots.
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nong yonk he's going to make it. he doesn't have the temperament to sit in the oval office. >> you are clearly not a fan of president. >> we'll leave it there. appreciate it. >> eamon, thanks. on the north lawn of the white house as well. here's what else is coming up on the halftime report. >> ahead. a top retail analyst sees opportunity in a retail name that's been beaten down. the firm uses terms like buying opportunity and significant growth potential. plus, the american society of clinical onkole ji is about to get started. this conference moves stocks. we'll run through the stocksly to move when the halftime report team come back in two minutes.
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tjx bucking the doup ward trend. stock got upgraded to overweight at morgan stanley. they see it as a buying opportunity. what do you guys think of this? it's a bold call to give any upgrade the overeight on apparel. it's one of a handful of stocks that have buckeded the trepd, so tjx, ross store, burlington, have all enjoyed a respite from what's been going on with the
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rest of the industry and they have premium multiples because of it. when you get one miss like this, it's kind of hard to come back. scott, we were talking last month about tract eor supply. that was on my radar list. they missed and just day after day, go down. i don't think today's bump and today's report is going to recover the stock which is finally feeling the effects. >> would anybody buy anything that has to do with apparel? it's home goods. everybody loves it and in the research report we're referencing today for morgan stanley, they ask consumers where they plan to spend the most with different outlets and
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furnishings and this company was number three out of ten or 12 names in the slide. i think this even in my own life, i have to stop at home good, do you want anything from the bagel store. shopping is going on at the store. it's unlike -- >> this call is not a home goods driven call. they say they're an an apparel play. they say they're overweight, all three off price retailers. this was an off price retail call. >> rue 21. bebe stores. all the bankruptcies going on out there. you look at the inventories that are going to be dumped by macy's and the rest. who feasts on that? the three stores you just talked about. ross stores, tj maxx, burlington. and the fact there's excess
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inventory beyond just normal seasonal things that move hoar and there, vthere's such excess these guys are going to be buying by pennies on the dollar for these goods, whether it's home goods. >> target -- came out this morning and upgraded their outlook. why buy a sector that is a falling knife. if this thing had been upgraded, do you agree that people will own retailer, regardless of the call you're seeing of the whole sector, which you and i agree on, there are still investment management people who are going to own retailers and probably, they're going to cluster into the handfuls. >> i don't own it personally. i hate this idea. i don't think you can see well, it's got risks, o i'm not going to own it. the idea that the stock has
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risk, that's exactly where return comes from. can't just paint nefrg the sector and say it's all bad. if you know how to look for them. >> at the end of the day, this is probably not a great place to deploy capital for the next year because it's under tremendous pressure. sometimes, you have to do the right thing and call it a dog. >> the premier cancer conference kicking off next week. next, a preview of the names you need to watch ahead of it. plus, amazon is reportingedly considering a move into the pharma space. a couple of big name stocks are on the move as a result of that news. meg has all of it coming up. first, we'll show you the dow 30 heat map. you have some stocks in the green. dow down 261 points. back after this.
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we sent dr. jay to the telestrator. what have you got today? >> sbac commune cases. it's a read, they own the towers putting up the data we're all use iing with ore cell phones a so forth and we're seeing a big surge today. take a look, stocks up four bucks. up two and a half or three when we first started to cite this activity today. they're buying september 150 calls, with the stock just shy of 135. they're buying the 150 calls this big numbers. sold the strike above it at the 155 strike, so that's called vertical or bull call spread. we think this could move significantly as you've seen this year. the fact that people are switching over and getting ready for five g and so forth is one of the reasons these guys have i think 15,000 towers and sites in the united states. another 10,000 in canada and south america. the bet is this one goes a lot
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higher by september. i'm in, probably in for about two months. >> come on back over here. now, head to sue herera with the latest news headlines. >> hi, and indeed, i do. here's happening at this hour, everyone. senate minority lead er chuck schumer once again calling for a special prosecutor to be pinted to investigate possible collusion between president trump's campaign and russia. he spoke on the senate floor. >> the events of this past week only heighten the need for a special prosecutor who's truly independent. to run the department of justice's investigations into the potential collusion between the trump campaign and russia. the american people must have faith in the integrity and impartiality of this investigation. >> lot of competition in the fast food industry and mcdonald's now says it's expanded its delivery service via uber eats to more than 1,000 restaurants nationwide. delivery is b available in orlando, tampa, miami, los
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angeles, columbus and phoenix. and the choking hazard has prompted the recall of thousands of plush toys sold ott special thety toy and gift stores. it involving 25,000 plush toys in three models. oliver the bear, chewy the english bulldog and charlotte the fox. so, if you bought one of those on a business trip to take home, send it back in. that's the news update at this hour. halftime report is back after a quick break. a used car,
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it's a big day for bio tech and pharma investors because later today, we'll get a slew of new cancer research data. meg is on the case from new brunswick, new jersey. hi, meg. >> hey, scott.
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that's right. it's that time of year again thrk wednesday, halfway through the month of may every year, we get tons of data sets coming out of the annual cancer research meeting. it starts june 2nd in chicago, but we get b about 5,000 sets coming out tonight. this always moves stocks. a key theme has been immune therapy. bristol myers, merck, roche and as kra senne kai, however, people are looking at a new player, incyte. the stock could swing 10 to 15% on either direction on how the experimental drug how that data looks, so people will be watching that closely. people are also looking at eli lily and nectar in the spaces, another area. looking at companies like juno, bluebird and kite. a lot of these stocks are the ones that move, but companies
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aross the board presenting data tonight. >> thank you so much. kevin, are you buying anything in this space? >> i also go golong going goo ts data set. i'm always going going into this and every year, we seem to get an acceleration on new uther pis. t hard to pick stoms. it is good news for the indices and this year, we've got exciting stuff. j&j is a perennial hold iing fo me. tonight is a big deal because it takes about a month to go through this stuff and let the analysts tell you what's going to happen. >> i like bristol myers and celgene. i don't have a huge exposure to bio tech. after meg's reporting this morning and tomorrow and people breaking it down over the next week or so, maybe i'll position into something else. >> i'm old enough to remember a time when we were saying maybe somebody should sell because
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somebody would tweet about drug prices. this is up standly from that moment last july and november and that formed kind of a b double bottom in price and now, you've got this consolidation period. it's been going on since february. early march. looks like these names want to breakthrough that. back into rally mode. i would be long here. i'm with john in b mrmy and the other name is am again and i like both. >> meg, the whole reason you are where you are today, what are the headlines? >> it's interesting, you were just talking about drug pricing. this is j&j's angel day. there have been questions about pricing pressure and whether the market is just tluging off legislation or other pressure that could come from the government. the company announceded plans to file for arooufl of more than ten new drugs by 2021 with more than a billion dollars each in annual sales potential, so that kind of buoying the sentiment here. they expect growth in the pharma
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unit, their biggest unit to accelerate in the second half of this year and it counted last year for 47% of j&j's annual sales. we sat down with the chairman this morning to talk about a lot of things including politics. take a listen. zpl encouraged by some of the things we are seeing like trade and regulatory policy, tax. i think wer style early on in the health care debate and i think that regardless of which particular proposal we end up implementing, there's still going to be a a lot of work to do and we look forward to working with them on that. kind of a wait and see approach. >> thank you. have a big waiting. >> that balance sheet is the most beautiful thing, it makes me cry joy. i love j&j so much. i'm emotionally involved. no question. it's a fantastic stock. >> amazon is reportedly rying to break into the multibillion dollar pharmacy space. meg is still with us meg, you
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have something on that? i've said good-bye to you twice and hello to you twice. >> you can't get rid of f me. so segway, j&j pointed out this morning they added at least $150 billion in market cap over the last five years. this news coming from cnbc.com's chrissy farr, who's reporting amazon is looking to potentially get into the pharmacy business. this is causing a big stir. people trying to figure out what that would look like. the biggest impact in terms of stocks are on the farm cys themselves f. you look at cvs and wall green, analysts saying it is these stocks sending them lower today. there are questions about whether amazon could try to compete in the pharmacy benefit business that includes cvs, express scripts and units health. those not getting hit as hard
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today. they've been beaten down on concerns about generic drug pricing, but questions swirling and show iing they want a playe to come in and disrupt this business. >> let me check with the control room. we done with meg? all right. that's it, meg, thank you. thank you so much. we'll see you soon. from the j&j meeting. up next, trades on ford, target, disney and red robin and jack in the box. first though, a sector check. let's take a look at the sectors lead iing and lagging on this dn day. trz on wall street. halftime report back after this.
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it is time for the blitz. ford is trading at its lowest level since august 2015 following the announcement of job cuts. jimmy. >> obviously, the industry is facing a plateau at best and maybe a decline from record sales of autos, so ford is responding to that. i think ford has been punished probably more than anything else, this is terrible, because they didn't go through bankruptcy and get all the concessions from the unions their competitors did get. this news that they're cutting the workforces, how are they going to divide it between the u.s. and rest of the world? did they take advantage of some perceived weakness in washington, d.c. to renege? that's a drama worth watching. >> now, jimmy, do you still own general motors? >> i do.
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you said the industry is is going through a plateau. >> i said plateau. that's right. i would love that. let's plateau. doetd you just make the case? >> specifically, i was talk iin about the union costs being different than gm. you're goung all semantic on me. you're saying legacy costs haven't been called. >> i'm not in ford you just made the case not to own it, not to buy an auto marek. >> that is not what i said. i made a case not to buy ford.
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>> so, ford is only acceptable to plateauing. >> you're missing the point. >> that's what you said. >> the point i made is -- >> what i talked about what was the fact ford did not shed its cost and they can downside without any penalty. you're asking for a bankruptcy to clean the pa the tina. >> i'm not asking for brucht bankruptcy. >> just having fun with you. target is moving higher today. you probably know about their strong earnings right now. let me pull back the curtain. they come out this morning, they
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beat on earnings, revenue versus wall street expectations. then take guidance for the full year. up to the higher end of the range. however, if you have a longer memory, you know three months ago they slashed guidance. they're the telling you what they had told you six months ago. double bottom in 52. if i feel the need to be long this name, by the way, i don't. if it gets below this level, there are no buyers clearly. i don't think it will. i think it's okay. >> kevin, disney got downgraded today. you still own the stock? >> still own the stock. prefer six months you get a buying opportunity. it's always proven to be a great buying opportunity. it is again right now. what's going on around the world in their theme park, they have more control over paris, they're
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kicking it in shanghai. everybody says, oh, no. it's the epd of company. the it's wrong, plus, you have ooifr stabilized. he'll be running the show for multiple years. every time this happens, i buy more. >> red robin and jack in the box. >> here's a shocker. people like custom burgers. something that's not just assembly line put together as much as burger king and mcdonald's tepid to be. >> i can confirm this. >> that's right, i did check with josh. red robin, almost doubled what people were looking for as far as earnings. it's traded 12 times normal volume. trade to a multiyear high. same thing with jack in a box. they may be considering spinning off qdobo. i like them both. >> last up, the russell. as in 2000, on pace for its worst day since late march. if you're buying. why? >> the small caps are the enswrin for the u.s. economy and when u.s. growth is picking up
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as we're starting to see now, i think that this is a great buying opportunity for the small cap stocks. i think they've underperformed year to date and moving forward as we start to get better growth ahead of us in the second aheadf us. >> let me ask you this, it's more macro market question. i have small caps underperforming. i've got transports underperforming. >> that tone going. watch out, erin. >> are you still rattled by that conversation? >> i'm having fun with you. you were having fun with 3450e me. >> generally that's not good for the market overall. >> it's one day, right. we have one day of this severe correction. >> not just one day. >> we've been in an environment where people have been very defensive in their positioning in equities. i think that's been driven by the fact that first quarter kept getting downgraded every single
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month for the last three months. we're finally -- yesterday was the first time that the atlanta fed upgraded their second quarter forecast for second quarter gdp. we're starting to see the upgrades come through. i think there are brighter days ahead. what we're seeing is the breadth is expansion. not just consumer led but we're covering more now to exports, to the capex most importantly. i think that is creating a solid and more firm underpinning for growth going forward. >> all right. how about gold? it is on the move. we'll get the trades when "the halftime report" comes right back. [vo] when it comes to investing, looking from a fresh perspective can make all the difference.
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chevron jumps 1.28% and transocean historically takes a hit. for more data go to cnbc.com/pro. welcome back to "the halftime report." i'm courtney reagan. gold surging nearly 2% today, solidifying its reputation as a safe haven medal as the u.s. dollar weakens and stocks sell off. on pace for its sixth straight day of gains. jeff, do you see more room to run here in the short term for the price of gold? >> courtney, i do see more room
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to run. above 1250. a two-step approach. we saw the cumulative process, not bothered or put a bid into gold but now this latest more so out of d.c. has vaulted gold back above $1,250 and kneecapped the dollar. as president trump is going on a historic trip to the middle east, the reason owning gold makes a lot of sense. look at the s&p 500 down 112 basis points. maybe i should round it to 1%. i don't want to complicate things. if the s&p 500 goes down another 1% to 3%, they're going to come in and gold should print $1,300 on that continued downdraft in equities. >> trump's first trip overseas coming up. who knows what that is going to be like and the headlines from that, looking at the technicals, though, for gold crossing above its 50 day and 200 day moving averages. what levels now should investors be watching? >> if you look at the longer term chart, it behaved remarkably well from a technical
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standpoint around $1,230. $1,320 is my upside target. the fundamental argument is once the market has been shaken by the lapels, probably should own gold, even if the situation calms down a bit, it's hard to unring that bell, so i still like gold. >> all right, thank you very much, gentlemen. for more futures now head to cnbc.com. the live show starts at 1:00 p.m. eastern. this is where i trade andrs. manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you.
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distributed by invesco distributors inc. we're back. let's look ahead to big earnings. cisco tonight, walmart tomorrow. jimmy, you own cisco. >> yeah. there's a bunch of questions here. one, what are they going to do with the cash? two, they have a lot of cash, a third of their market cap is cash. two, a lot of their competitors, june perfect reported good numbers. does that mean their cannibalizing eating cisco's lunch? we have to find out. and then the other thing is how is security doing with regards to the hardware business. is that taking over from the hardware business which has matured? >> somebody give me 20 seconds on walmart. >> just off the highs and i think somebody has to be winning with all the money that's being spent in stores, judge, not just amazon. could be these guys with jet. >> josh, final trade? >> i want to pull out jpmorgan from the rubble today. this is a stock i think still down two. i would be a buyer here. i like this thing anytime i can get it under $90.
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>> jimmy, do you have a final? >> apple. you have to buy this dip here. the highest quality name in the s&p right now. this is an opportunity. >> erin browne? >> the index to buy, i think you use this opportunity to buy. >> smoke coming out of your ears. >> i forbid you, erin, to do that. i will go long and i bought some just before i came on the set. it's the russell 2000 without all the bad names. it's only 339 names. i love it. return on assets is three times higher on the index than the russell. >> we have to go. thank you for being here. erin, thank you. "power" starts now. the white house under fire and your money is feeling the heat. welcome, everybody. i am brian sullivan. reports of a memo from former fbi director james comey may directly contradict the president sending shock waves through socks today. the d.c. drama may only be just beginning. we have the very latest. the big question is, what will happen in washington? will that impact consumer spending and the overall economy? moves one big

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